Market faces up to troubled calm after a perfect storm
Convertibles bankers are fretting about the lack of issuance so far this year. It’s hardly surprising, it was one of the most active markets in 2001. Some are hoping that the need to raise money quickly will help boost volumes but issuers may prove cautious.
Just as equity-linked bankers are starting to get used to a high profile, it seems it may be in jeopardy. Last year, as convertible issuance shot up by more than 50%, their market suddenly became mainstream. From being a product that contributed between 10% and 15% of the business of the equity capital markets divisions of most banks, in 2001 it accounted for more than a third.